Sydney hospitality group Public is back in the spotlight after a tumultuous year, with the business losing control of five venues.
Insolvency firm FTI Consulting is now managing Oxford House, The Norfolk Hotel, The Strand Hotel, the Camelia Grove Hotel, and The Exchange Hotel after credit investor Muzinich & Co pulled the pin on a refinancing deal, as reported by the AFR.
The New York-based investor appointed FTI Consulting as the administrators of the five venues, with the firm looking to sell the locations as soon as possible.
Receiver Vaughan Strawbridge from FTI Consulting said the venues would continue to operate as per usual during the sales campaign.
“We will be working closely with management of the venues to ensure they continue uninterrupted by this process while we seek new owners for the venues to secure their future,” he said. “We expect a lot of interest in these venues.”
Public announced its restructure back in June and secured a reported $400 million refinancing deal in August, with the group stating the deal would allow it to “undertake significant property improvements” to hotels located in Bondi, Darlinghurst, Potts Point, and Annandale.
While Public’s portfolio is set to shrink with the sale of five of its most prominent locations, the group remains in control of 12 venues including the Empire Hotel in Annandale and the Exchange Hotel in Balmain, which have separate loans with Deutsche Bank and Archibald Capital.
